All Financial Wisdom
Amazon (and not China) could be the big threat to employment in the United States
At Amazon everything seems to be pink. The e-commerce giant catches us with efficiency and prices that make it very difficult to compete with, and its transformation of our consumption model has affected our lives and could do so even more in the future.
This will also have a direct impact on the labor market. Per a study conducted by Marketwatch, the success of Amazon and its increasing automation will destroy many jobs related to traditional commerce in the United States and, probably, the rest of the world.
Amazon grows non-stop, but at what price?
The consequences, say those responsible for that study, will be more serious than the outsourcing of jobs in China on issues such as the manufacture of all kinds of electronic devices.
Amazon announced earlier this year that it would create 100,000 jobs in the United States, a sizeable figure that nevertheless needs to be viewed with perspective. According to MarketWatch, every job created on Amazon will destroy two or three jobs in other businesses and businesses.
The success of Jeff Bezos’ company contrasts with the layoffs and closures in various American chains and stores. Macy’s announced that 10,100 employees would leave the company recently, plus 4,000 from The Limited and thousands more working at both Sears and Kmart, two chains that announced the closure of dozens of stores.
Automation, another of the hazards
Added to that are another 125,000 jobs that have disappeared from the traditional commerce segment in the last two years in the United States. Employment in physical stores has dropped 14% since 2012, and clothing and electronics retailers have most noticed the impact of the success of Amazon and its online store.
The problem could get worse now that Amazon seems to want to conquer the food sector and that its presence in other markets is strengthened. Automation in its stores and in physical stores) with projects like Amazon Go will also have an impact on that destruction of employment that in this case will affect a position as popular as the cashier: 4 million people work in that position in the United States.
Many are already aware of these dangers, and the conclusions of the study are extrapolable to the rest of the world. That Amazon works so well could end up not being so good, after all.